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Experienced Member

Running Balance

We are a development company, we have 2 Finance Companies, under 1 company we have approx 15 jobs(houses being built) and the other company we have 3 jobs.  For each house we get a loan from the Finance company.

Is there a way to set this up so we can start with the loan amount , and then when a vendor sends us their invoice and we pay them , the amount we pay them comes off of the loan amount that we entered at the beginning of the build, and then we can see the balance left on the starting loan amount.

Right now we have our Quickbooks set up with a customer (finance company) and then jobs (each job is a different House)

2 Comments
QuickBooks Team

Re: Running Balance

Recording a loan and it's payment will just take a few steps, Nb1960.

 

To track the loan, we'll have to create a liability account. You can use either Other Current Liability (the loan will be paid within the current fiscal year) or Long Term Liability (the loan will be paid after the current fiscal year).

 

Let's go ahead and set it up. Here's how:

  1. Click Lists, then go to Chart of Accounts.
  2. Click Account, then choose New.
  3. Click the Other Account Types drop-down arrow, choose Other Current Liability or Long Term Liability, then click Continue.
  4. Enter a desired name.
  5. Click Enter Opening Balance to enter the loan amount, then click Save & Close.

Then, here's how you can record the payment:

  1. Click Banking.
  2. Choose Write Checks.
  3. In the first row, add the liability account you've created and the payment. 
  4. In the second row, add an expense account for the interest (optional).
  5. Click Save & Close.

As always, I suggest conferring with your accountant on the best way to handle this situation. 

 

While I can't provide an accounting advice, I'll be along straightaway to help you with any QuickBooks technical concerns.

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Re: Running Balance

First, it matters if you got a Loan (already got the proceeds) or are explaining a Construction Loan (line of credit) that will be Drawn from: "Is there a way to set this up so we can start with the loan amount , and then when a vendor sends us their invoice and we pay them , the amount we pay them comes off of the loan amount that we entered at the beginning of the build, and then we can see the balance left on the starting loan amount."

 

Because, Yes, everything you do is supposed to be done using a Customer Transaction, and yes, all of that tracking is available.

 

"Right now we have our Quickbooks set up with a customer (finance company) and then jobs (each job is a different House)"

 

Exactly. It matters if you already got the funds to Banking or make progressive draws from the loan, to Checking, and need to see this each time. Or, you pulled all the funds at once. Or, the Payment is going to be made from the LOC.